Exploration Roll
Lake Shore Gold (NYSEMKT:LSG) has announced more exploration results from its Timmins West mine in Ontario. 48 holes have been reported for a total of almost 14,000 meters of the planned drill program of 20,000 meters. The bulk of these holes was aimed to test the S2 Fold nose which seemed to be a similar structure like the Timmins West mine.
The results are - once again- quite good with for instance 9.3 meters of roughly 0.4 ounces of gold per tonne of ore, as well as 5.4 meters of almost 13g/t. As these intercepts were encountered near existing resource blocks (along strike and at depth), it seems to be extremely likely Lake Shore Gold will be able to substantially upgrade its existing resource estimate at the Timmins complex. According to the company, it now looks like the mineralization occurs within a series of lenses around the S2 Fold nose which was being drill-tested. Another drill program will be needed as the company will need to use a tighter drill spacing in order to keep its consultants which need to calculate a resource update happy.
The drill program at the Timmins mine is coming to an end, and we likely won't see any exploration updates from Lake Shore throughout the winter. Investors have a lot to digest, as besides an excellent operating performance, the company has enjoyed an important exploration success as well, as the mineralized system at and around the Timmins project could be substantially larger than originally anticipated. It looks like Lake Shore will tick all the boxes it planned to tick this year, and the future looks quite bright.